‘IT WAS SUPPOSED TO BE A WIN-WIN’: Pintard defends former govt’s failed Grand Lucayan deal

Pintard: FNM does not object to separating hotel and port deals if it would result in successful sale

Opposition leader wishes govt well in pursuing a resolution

NASSAU, BAHAMAS — Free National Movement (FNM) Leader Michael Pintard yesterday said the deal the Minnis administration negotiated for the sale of the Grand Lucayan was expected to be a win-win with the introduction of a cruise port with the Freeport Harbour Company.

In a statement on the matter, he defended the Minnis administration’s handling of the purchase and sale of the Grand Lucayan resort to the Royal Caribbean/ITM Group.

We believe the decision to save Bahamian jobs and demonstrate our commitment to the rebound of Grand Bahama was the right thing to do.

– Free National Movement Leader Michael Pintard

Pintard’s comments come after the government announced that the boards of Lucayan Renewal Holdings Limited and Lucayan Beach Casino Holdings Limited met to “terminate by mutual consent” the 2020 purchase agreement.

The FNM leader indicated that the former administration did what it believed was in the best interest of the Bahamian people, to save jobs and to send a critical signal to the Bahamian and international communities at that time that Grand Bahama was open for business and for investment.

Pintard explained that the government thought the Royal Caribbean/ITM Group would be an “ideal purchaser, credible [and] well-funded, with an ambitious plan for the redevelopment and expansion of berths at the Freeport Harbour and a new strategy for the Grand Lucayan property”.

However, he noted that negotiations for acquisition of the Grand Lucayan hinged on the Royal Caribbean/ITM Group reaching an agreement with the Freeport Harbour Company on the construction of new berths to accommodate the largest cruise ships in the world.

“Unfortunately, those negotiations bogged down in the wake of Hurricane Dorian and the pandemic and eventually stalled, putting the sale/acquisition on hold and eventually in jeopardy,” he said.

“A study commissioned by the government, conducted by accounting firm KPMG, concluded that the best chance for the long-term success of the Grand Lucayan was for it to be linked to the port deal being contemplated by the Royal Caribbean/ITM Group, which guided and gave the government the confidence to try to finalize a deal with the three parties.

“The FNM remains committed to Grand Bahama and the rebirth of its tourism sector.

“We hope that the current Davis-Cooper administration can salvage the port deal and can conclude a sale of the hotel in the very short term.

“We do not object to separating the hotel and port deals if this is going to result in a suitable developer acquiring the hotel. We wish the government well in this regard.”

He added that despite the unfortunate delays and changing conditions, “we believe the decision to save Bahamian jobs and demonstrate our commitment to the rebound of Grand Bahama was the right thing to do”.

The government purchased the Grand Lucayan resort for $65 million in August 2018.

In March 2020, the government signed a heads of agreement for the sale of the resort to Royal Caribbean/ITM, which would redevelop the resort and construct a new cruise port.

In a statement on Tuesday, Deputy Prime Minister and Minister of Tourism Chester Cooper said the terminated agreement has cost taxpayers well in excess of $150 million.

He added that talks with other potential investors will start shortly.

Former Minister of Tourism and Aviation Dionisio D’Aguilar blamed the failed Grand Lucayan deal on the inability of the Freeport Harbour Company to “strike a deal” with Royal Caribbean/ITM.

While in office, D’Aguilar described the resort’s sale as “extremely frustrating”.

He told Eyewitness News on Tuesday that he wished the Minnis administration had handled the negotiations differently.